International Cocoa Organization (ICCO) | 6 March 2015 Chocoa Conference Are we running out of chocolate? 6 March 2015, Amsterdam, The Netherlands Daily QKCc1 21/09/2005 -29/08/2014 (NYC) VltyOHLC,Q KC c1,Trade Price, 0.0,10,365.0 05/01/2010,22.93 BarH L,QKCc1,Trade Price 05/01/2010,142.70, 140.40, +2.45,(+1.79% ) BBand,QKCc1,Trade Price(Last), 20,Simple, 2.0 05/01/2010,149.64, 142.35, 135.06 Value USc Lb s Auto 10 20 30 40 50 70 80 90 100 120 160 170 180 190 200 210 220 230 240 260 270 280 290 135.5 0 55.74 146.00 125.19 104.39 248.94 O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tue 05/01/2010 Laurent Pipitone, Director of the Economics and Statistics Division, ICCO - [email protected]
10
Embed
International Cocoa Organization (ICCO) | 6 March 2015 Chocoa Conference Are we running out of chocolate? 6 March 2015, Amsterdam, The Netherlands Laurent.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
International Cocoa Organization (ICCO) | 6 March 2015
Chocoa Conference
Are we running out of chocolate?6 March 2015, Amsterdam, The Netherlands
O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Tue 05/01/2010
Laurent Pipitone, Director of the Economics and Statistics Division, ICCO - [email protected]
International Cocoa Organization (ICCO) | 6 March 2015
“We'll run out of cocoa in just SEVEN years!”“The world will officially run out on October 2, 2020”Star Sunday – 6 October 2013
“No more chocolates by 2020!”“Chocolate bars may get replaced by slabs of palm oil and vegetable fats packed with raisins and nougat by 2020 ”The Times of India – 13 April 2014
The “chocapolypse 2020”Are we going to buy our chocolate in jewellery shops?
Alarming headlines … unrealistic????2
“Don’t panic, but we could be running out of chocolate”“By 2020, the world could see a chocolate deficit of 1m tonnes”The Telegraph – 17 November 2014
International Cocoa Organization (ICCO) | 6 March 2015
Source: ICCO
3
Growth in cocoa consumption
International Cocoa Organization (ICCO) | 6 March 2015
International Cocoa Organization (ICCO) | 6 March 2015
Source: ICCO
Trend in supply & demand
5
International Cocoa Organization (ICCO) | 6 March 2015
Cocoa supply surplus/deficit & prices: the long-term trend
Analysis using the Hodrick–Prescott filter
International Cocoa Organization (ICCO) | 6 March 2015
Risk of production deficit vs risk of surplus…“Structural” supply deficit: 1. price of cocoa surges2. growth of demand for cocoa and chocolate products is reduced, particularly from developing and emerging economies
& the industry and consumers seeks cheaper alternatives to cocoa.3. more investment in cocoa growing is made due to the increased attractiveness of cocoa growing - cocoa production
rises 4. price of cocoa starts to decline…5. …while a period of supply surplus is emerging……
“Structural” supply surplus: 1. price of cocoa falls2. growth of demand for cocoa and chocolate products increases, particularly from developing and emerging economies3. Cocoa growing is no longer an attractive business opportunity – cocoa farmers tend to invest in alternative crops
(palm oil, rubber, etc). Younger generation is not there. The poorest smallholder farmers, with no alternative to cocoa growing, continues but poverty is increased - cocoa production does not increase to meet potential demand
4. price of cocoa starts to increase…5. …while a period of supply deficit is emerging……
Both scenario are plausible in the medium term… but oversupply would have a more damaging impact on the sustainability of the cocoa sector… All efforts to improve
sustainability of the cocoa sector will be partially lost! Good cocoa prices and farmers’ income are a precondition to sustainability.
International Cocoa Organization (ICCO) | 6 March 2015
The “cocoa ship”: which tool to navigate?
International Cocoa Organization (ICCO) | 6 March 2015
Increasing productivity AND encouraging crop / farm diversification…
Better coordination of initiatives and national policies affecting supply, at national level
(PPPP) and international level…
9
ConclusionsInterdependence of actors in the value chain
Better tools to evaluate market situation and future prospects…
Don’t worry and enjoy your chocolate !!!!
Increasing quality, promoting diversity and branding the cocoa origins (de-commoditization) for
better prices…
International Cocoa Organization (ICCO) | 6 March 2015
ICCO CONFERENCE ON THE COCOA MARKET OUTLOOK
22 SEP 2015 - LONDON
Part I: Overview on global supply and demand for cocoa
Part II: Supply outlook and the economics of cocoa farming•The determinants of cocoa supply •The recent developments in Africa, Asia & Oceania and in the Americas•Smallholding cocoa farming: productivity and income•Large commercial estates: increasing contribution?
Part III: Cocoa prices development and futures markets•The determinants of cocoa prices•Recent developments on cocoa futures trading
Part IV: The economics of cocoa processing and manufacturing•The recent trends in cocoa processing •The economics of cocoa processing and chocolate manufacturing •Market concentration and vertical integration